Topic: Public Auction - 20MW US Mining Datacenter - All Servers + All Electrical (Read 740 times)

This topic in the marketplace start to look like everything but not a sale topic...
I mean we all appreciate all the great information everyone shared but isn't the marketplace section for actual market?
I don't see a single offer/bit or anything market based in-topic...

This is exactly correct. I just went through the vetting process and signed their confidentiality agreement to try and become a " qualified bidder ". After going through all that trouble they responded by basically setting the bar so high that almost no one can "qualify". This "auction" is clearly a smoke screen to allow for the exact process described by the previous post. These people are complete scumbags. Don't waste your time. I'll be filing a report with the SEC on this little ruse. It's maggots like this that give mining a bad name and ruin opportunities to raise working capital for legitimate miners. Same garbage as that " Riot Block Chain ". Another massive ruse.

This is exactly what we all suspected from the jump.

Sean Walsh was the CEO of hyperblock until very recently when he resigned and called due a note against the business. It is pretty apparent that there is no actual intention of selling the value of the facility just eliminating any value to Hyperblock and those equity holders. Basically the former CEO and founder offers goes public, takes investor money, runs the company into the ground, resigns, calls some dubious note due and then uses that note to claim any value. At that point Walsh will restart operations with 100% control, only the gear that is profitable, and a trail of shocked and disappointed investors in the wake. 

I was wondering too how these guys ran the company into the ground. inept/overbuilt and greedy investors likely.
Not easy to run a business either..so understand that perspective as well.
Would like to get my hands on some of the better miners though

These people had no idea what they're doing. They never stood a chance to survive. If you know anything about commercial scale mining, you don't use massive amounts of interior switch and step down transformers. If you know what you're doing, you step it down at the transmission line through the correct Transformer application. It's sickening that rank amateurs like this get this kind of money and opportunity. There will be many more of these forthcoming as the weak amateurs get beaten down for poor management of cost and infrastructure. Riot Blockchain in CO. will be on this list soon. Another massive overextended data center in OK City. 120,000.00 sq ft and they air condition their facility for cooling ASIC miners. They also held almost all the BTC they've mined and got slaughtered on the break. Complete idiots.

I think the asset list makes it pretty clear why the farm went belly up. Looking at the electrical components alone, there's almost 30MVA in indoor transformers, coupled with all the additional goodies (25MVA in disconnects, loads of panels, etc). From the looks of it, everything seems as if it was bought brand spanking new so that's quite a pretty penny. The infrastructure costs sunk this ship; great opportunity for someone to buy in at a deep discount (I wouldn't be surprised if a legally separate yet somewhat related entity scoops it all up and resumes ops with a much nicer debt structure/payment schedule).

I suspect there are some good reasons this place is offered at auction. Namely insolvency of the previous business. Good luck with the sale. Seems like buying a used car....or someone's problems.

Well Solar in the correct place with government incentives makes some sense.

It must always be grid tied. As batteries are too costly.

A 20 mega watt setup. which provides 3.33 mega watt 24/7/365 via grid tie in.

 Can be built for 10-12 million.  That would be the panels and inverters only.

Labor here in NJ would be 100-200k.  so lets say 12.5 million

But.
you need many acres of good land to do this. Say 120-150 acres due to set back.
you need a building with lots of fans to cool the equipment.

You also need a power grid to tie into that can handle 20 megawatt at peak

Lastly you need to show the power company you need. 3.33 megawatts 24/7/365

The only way to show you need 3.33 megawatts is to setup a mine that  uses 3.33 megawatts

that is 2.222 kwatt per s17pro. or. 1500 s17pro. would do the load. you need to do it for 6 months.   

so buy 1500 s17pro at 1200 each =
 around 2 mill
mine for 6 months at maybe 12 cents here in NJ

that is 14398560  kwatts used or 1.73 million

so now. six months in

you purchased the land at 1 million if you are lucky
you went with. containers say 10 ant box n5 about 400,000
you grabbed the s17pros 2 million
you paid power for 6 months say 2 million

that is 5.4 million
add in hookup to the grid you could be close to .6 million

some land prep and development. and you are six months and 6 million in.

you have your 1500 s17 pros
you have your 10 ant box 5

and you can now build the array say it takes 3 months.

so add 1 million for 3 months more grid power.  you are up to 7 million.

you have mined with 79500th say 80ph for nine months. which is 2,000,000 in coin

you now get to put down 12 mill maybe 13 mill to do the solar build

so after 9 months you have 2,000,000 in coin
and 1500 s17 pros
and 10 ant box filled with them
along with the 20 mega watt field that yields 3.33 mega watts.

you laid out about 19 to 21 million

you get 26%  back federal so 5.46 million fed

so drop the 21 to 15.5  take off 2 for the coins you have and you are at 13.5 take 9% off for NJ rebate about 1.9 million

and you are down to 13.5-1.9 = 11.6 million

you can mine for free

well maintenance of 30 year insured gear. the solar array.

there were more rebates but with covid-19.  they could be killed off.

This deal looked better last year before covid-19

Well my opinion is that nobody would invest in a solar system of 20MW just to mine with a 286PH worth of hash rate, the cost of solar arrays alone would be about 3$ per watt, say he gets it for 2$ given the size of the system, so roughly 2 million dollars per MW, or 20M for the whole system, if he is going to go on-grid to not have to deal with batteries, he will need about a 5 times larger system, it just can't work.

Jeez! You guys really have the funds to at least 'contemplate' bidding on something like this?

My own views would be to build a solar farm first then add miners

brad

This datacenter is a piece of art.

Reading into the article this is what they seem to have as far as BTC or SHA256 is concerned.


https://news.bitcoin.com/hyperblock-bitcoin-mining-servers-and-datacenter-infrastructure-to-be-auctioned-off-in-public-sale/



A translation of that to hash power we get:



That is a whooping 286PH of hash power, unfortunately, 32.3% of that hash power is close to useless now, the S9 and Avalon921 are far form efficient and they can hardly mine anything anymore (except in a few countries with free or almost free power rate), Ironically if these get picked by a re-seller - they will probably send those S9s back to China to get a good deal on them because in the U.S they are pretty worthless, good luck with the auction.

Does the building come with it or do you have to remove everything from the building?

What's the electricity cost?

On June 3, 2020, we are auctioning off all the equipment and servers in a 20MW US-based crypto-mining datacenter, previously owned by Hyperblock LLC.

Video of datacenter: https://youtu.be/G3yVO0l7Zd0

Here's a link to a full article, with photos: https://news.bitcoin.com/hyperblock-bitcoin-mining-servers-and-datacenter-infrastructure-to-be-auctioned-off-in-public-sale/

If interested, please email [email protected] to get qualified as a bidder.

Attorney Contact Information:

Peter W. Ito
1550 Larimer Street, Suite 667
Denver, CO 80202
[email protected]
(720) 281-5294